Correlation Between SunLink Health and Acme United
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Acme United at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SunLink Health and Acme United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunLink Health Systems and Acme United, you can compare the effects of market volatilities on SunLink Health and Acme United and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SunLink Health with a short position of Acme United. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Acme United.
Diversification Opportunities for SunLink Health and Acme United
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SunLink and Acme is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Acme United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acme United and SunLink Health is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SunLink Health Systems are associated (or correlated) with Acme United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acme United has no effect on the direction of SunLink Health i.e., SunLink Health and Acme United go up and down completely randomly.
Pair Corralation between SunLink Health and Acme United
Considering the 90-day investment horizon SunLink Health is expected to generate 2.94 times less return on investment than Acme United. In addition to that, SunLink Health is 1.35 times more volatile than Acme United. It trades about 0.02 of its total potential returns per unit of risk. Acme United is currently generating about 0.06 per unit of volatility. If you would invest 2,472 in Acme United on September 1, 2024 and sell it today you would earn a total of 1,979 from holding Acme United or generate 80.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. Acme United
Performance |
| Timeline |
| SunLink Health Systems |
| Acme United |
SunLink Health and Acme United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Acme United
The main advantage of trading using opposite SunLink Health and Acme United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Acme United can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Acme United will offset losses from the drop in Acme United's long position.| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
| Acme United vs. Mannatech Incorporated | Acme United vs. European Wax Center | Acme United vs. Inter Parfums | Acme United vs. Spectrum Brands Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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